2 Australian dividend giants to buy and never sell

When it comes to building long-term income, the best dividend shares tend to have 2 things in common. They generate strong cash flow, and they keep paying shareholders through different market cycles.

On the ASX, a small group of companies fit this profile, standing out for their ability to deliver reliable dividends year after year.

Here's why 2 of these dividend giants deserve a place in any long-term income portfolio.

Dicker Data (ASX: DDR)

Dicker Data is one of the quiet achievers of the ASX.

The company is a major IT distributor across Australia and New Zealand, supplying hardware, software and cloud solutions from global brands like Microsoft, Cisco, HP, Lenovo and Dell. While it may not attract much attention, it is well positioned to benefit from ongoing growth in cloud computing, AI and cybersecurity.

What really sets Dicker Data apart for income investors is its quarterly dividend.

Unlike most ASX companies that pay twice a year, Dicker Data pays shareholders every 3 months.

Over the past year, it has consistently paid 11 cents per share each quarter, or 44 cents annually, fully franked. At the current price of $10.21, that equates to a yield of roughly 4.3%, before franking credits.

Brokers have often pointed to the company's strong cash generation and conservative balance sheet as key strengths. Even while paying regular dividends, Dicker Data continues to invest in new warehouses, automation and expanding its vendor relationships.

For income-focused investors, Dicker Data stands out as a business that rewards shareholders while continuing to grow. Its regular dividends are supported by a solid and well-run operation.

Woodside Energy Group Ltd (ASX: WDS)

Woodside is one of the biggest income payers on the ASX.

The company is Australia's largest oil and gas producer, with major LNG and energy assets that generate strong cash flow. Even after a weaker share price, Woodside is offering a fully franked dividend yield of around 7% at recent prices.

Over the past year, the company paid about $1.65 per share in dividends. That level of income is why Woodside continues to appeal to dividend investors.

Some brokers have raised concerns about softer energy prices and recent management changes. Even so, most still expect Woodside to produce enough cash to keep paying solid dividends over the next few years.

Woodside also has a clear dividend policy aimed at smoothing out earnings ups and downs. This helps provide shareholders with more stable income, even when energy markets move around.

Foolish bottom line

While their businesses couldn't be more different, Dicker Data and Woodside Energy both stand out as shares that reward long-term investors with dividends.

Dicker Data pays regular dividends every three months and benefits from long-term growth in technology. Woodside pays large, fully franked dividends supported by ongoing global demand for energy.

For investors looking to build reliable income over time, these Australian shares can be held for the long run.

The post 2 Australian dividend giants to buy and never sell appeared first on The Motley Fool Australia.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2025